Receivership
A type of bankruptcy a company enters when a receiver is appointed by bankruptcy courts or creditors to run the company. Investopedia Says:
The responsibility of the receiver is to recoup as much of the unpaid loans as possible.
Being in receivership is not an enviable situation for a company. Often receivers find that the best way to pay back loans is to liquidate the company's assets, which would effectively put it out of business. Related Terms:
Bankruptcy
Bankruptcy Risk
Debt
Discharge in Bankruptcy
Receiver |